Frances has a linear production possibility frontier when she produces tomatoes and green beans. If she uses all of her resources, she can produce 400 bushels of tomatoes or 800 bushels of green beans. Frances CANNOT efficiently produce _____ bushels of tomatoes and _____ bushels of green beans.
A)400; 0
B)200; 400
C)200; 200
D)0; 800

Question

Quizplus · Accepted Answer

A linear production possibility frontier implies a constant trade-off between the two goods. Frances can produce 400 tomatoes or 800 green beans, meaning the opportunity cost is 2 green beans per tomato. Producing 200 tomatoes would use half her resources, leaving enough to produce 400 green beans. Producing 200 tomatoes and 200 green beans would not use all resources efficiently.

Frances Has a Linear Production Possibility Frontier When She Produces